Sears responds to 'misleading article' about vendor troubles

NEW YORK (MarketWatch) -- Sears Holdings
SHLD, -0.73%
said, in response to a "misleading article recently published," that it has had "no material interruptions in the flow of goods to our company." The department store chain said it has "significant financial flexibility" to execute its transformation to meet its obligations, including paying its vendors and suppliers. Sears added that it's stores are "well stocked," with a total of $6.5 billion in inventory currently in its stores. Sears' comments were in response to an earlier Bloomberg report, which said a top provider of credit insurance to vendors had sent out a cancellation notices, prompting at least one vendor to halt shipments to Sears. "Providers of insurance have never had to pay a claim to a vendor tied to [Sears'] business," Sears said. "Despite the rumors and speculation on this topic, for [Sears] there has been no signficant impact to date on our business." The stock was down 11% in midday trade, but had been down as much as 17% earlier in the session.

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